The recent sky-rocket of American equity has been nice and plentiful, but it has still left plenty of properties underwater, financially.
“The equity boom, which has added an estimated $1.6 trillion to the personal net wealth of American homeowners in the last year, has slowed dramatically. It’s not over by any means. It has just lost some of its previous pep.
In the latest quarterly data from the Federal Reserve, which tracks residential real estate, home equity holdings across the country rose by $177 billion. That sounds massive but it’s actually down significantly from the previous quarter, when equity soared by $452 billion — nudging half a trillion dollars.”
As made very clear here by Kenneth R. Harney, from L.A. Times, the phrase “equity boom” doesn’t hold quite the same glamour as it did before. Check out his article, with some more information on the crisis.